Take a look a the chart above you can really see how the bands really play into a market where we have extended trends and violent pullbacks. Today is one of the largest down days we have had two months. off nearly 20 handles. We had quite a bit of dollar strength as well today which leads me to believe there was true fear in the market over the Korea crisis and the pending Irish debacle…. The way which gold futures stayed bid
along with the dollar and risk assets such as equities tumbled was the true signal of fear.
If you remember back to my post lastnight on the interesting movement in the overnight markets that was the foreshadowing to what went on today. I will have a late night futures update coming. i just wanted you all to see this chart once again after the reaction down into the bollinger channel.